We’ve recently helped to fund a theme park. Can you imagine the excitement from our funding partners when we spoke? It could and should be one of the most fun days out for any business meeting, surely? Not that there is a need to visit clients who apply for a business cash advance, but when the required value is relatively large, it is sometimes a requirement by the lenders to do a site visit.
So why should a business cash advance work well for a theme park looking for finance?
Well, there is a high volume of sales via credit and debit cards from customers, bookings both online and over the phone are taken with credit cards, plus there are many locations around the park such as restaurants and shops where credit card transactions are frequent.
Why not use standard commercial finance to raise funding?
Like with many large projects, there may well be many different commercial finance types being used at different times and for different purposes. Equipment finance for the theme park rides can come from various sources, including asset finance and traditional business finance.
A merchant cash advance can also be used to fund equipment, and in some businesses, we have seen our product being used for just that purpose ahead of other types of alternative business finance. Development finance and construction finance are also used at strategic timings as a theme park starts top grow.
These products can be found at our partner website Capalona, where you can find a whole range of commercial business funding information. It’s fairly common for a cash advance to be used as a secondary business loan type that can work entirely with your customer credit card transactions. It’s usual to raise an equivalent of your monthly card turnover as an advance amount.
It repays as and when you make sales on your card transactions, thus working in line with your seasonal cash flow. This is one of the biggest advantages of a business cash advance over a traditional bank loan. If your business experiences low sales for the month, you will pay back less for that month. This takes the financial cash flow pressure off your business. Find out more about how we may help any type of business that takes credit and debit card transactions with their customers.